143k views
4 votes
As the price level​ rises, firms respond in the short run to the change in the real wage rate by​ ______.

1 Answer

4 votes

Answer:

A. increasing production

Step-by-step explanation:

In case when the level of price increased, that the firm respond in the short run with respect to the change in the real wage rate would increase the production level as the level of price increased also it shows the direct relationship between the price level and the production level

Therefore in the given situation, the correct option is A. increasing production and hence, the same is to be considered

User ShadowRanger
by
6.8k points